Flaming
enthusiasm, backed up by horse sense and persistence,
is the quality that most frequently makes for success.
Dale Carnegie,
Motivational Speaker and Writer
<>
The Small Business
Administration
Mentor-Protege Program
When a company is small, the
SBA Mentor-Protege Program can provide the expertise of a large, experienced
company to help it along with government contracting.
The SBA's
mentor-protege program brings together 8(a) participants and experienced
entrepreneurs. It is a unique tutoring process for entrepreneurs.
The SBA considers those entrepreneurs who are socially or economically
disadvantages to be eligible for the 8(a) program. Speak with a
representative at the SBA for clarification on whether or not your company may
qualify.
To participate, an entrepreneur
must first be eligible for the 8(a) program.
l
be in the developmental
stage of the 8(a) Business Development program, or
l
never have received an 8(a)
contract, or
l
be less than half the size of a
small business, as defined by the SBA, based on its primary Standard
Industrial Classification code,
l
be
in good standing in the 8(a) Business Development Program, and
l
be
current with all 8(a) reporting requirements.
While an 8(a)
company can only have one mentor at a time, that mentor can provide
significant assistance. For instance, a mentor may provide you with
l
Technical
and management assistance. The mentor's expertise, resources and
capabilities are made available to you.
l
Financial
assistance in the form of equity investments or loans. A mentor can own
equity interest of up to 40% in your business to help it raise financing.
l
Subcontract
support. Your mentor can enter into a joint-venture arrangement with you
to compete for government contracts.
l
Assistance
in performing prime contracts through joint-venture arrangements with 8(a)
businesses.
What
companies become mentors?
The SBA makes
every effort to connect companies that are simpatico. The arrangement
must benefit both, or it doesn't work. For instance, bringing together a
young apparel manufacturer with an oil-developer mentor would not work.
But when that young apparel manufacturer is mentored by a garment manufacturer
that supplies to the U.S. Army, a good match is created. The
"minority" status of the young company will assist the mentor in
gaining government contracts, and the experience of the mentor company will
flow to the protege.
The mentor/protege
arrangement is a formal written commitment of at least a year.
The mentor
company must be strong financially, be profitable for at least the past two
years and be a federal contractor in good standing.
Contact your
local SBA office for information on how your company may become part of the
mentor/protege program.
